Six out of ten (57%) drivers bought their automobiles outright with money or debit card says a brand new Opinium survey of two,000 UK drivers, commissioned by InsuretheGap, an unbiased supplier of GAP (Assured Asset Safety) automotive insurance coverage.
This varies extensively with age from 38% amongst 18 – 34s, rising to 70% for the over 65s.
4 out of ten (43%) suppose entry to finance on a brand new or second-hand automotive is simple, with this sentiment larger amongst males (51%) in comparison with girls (35%). Amongst all automotive patrons, 10% have been financed by PCP, 8% rent buy, 7% mortgage from financial institution, 5% long run lease settlement, 4% versatile all-inclusive subscription, 3% given as a present, 3% non-public car financing and a pair of% mortgage from household or mates.
Buying a automotive with a bank card is considerably extra prevalent amongst the youngest age group of 18 -34s at 5%, in comparison with just one% amongst folks aged 35 plus.
Ben Wooltorton, of InsuretheGap.com, stated, “Buying a automotive is normally one of many greatest monetary commitments that individuals make. Within the unlucky occasion of your automotive being stolen or written off, insurance coverage corporations will usually solely pay out the quantity which the automotive is valued at on the precise day the declare is made, which is usually a lot decrease than the unique buy worth resulting from depreciation.
“This isn’t good for somebody who has purchased a automotive in money, however may go away some folks persevering with to repay automotive loans for autos that now not exist.
“Insurance policies from InsuretheGap.com can defend drivers from this and will be a lot decrease in worth than these offered by the automotive dealerships.”
The survey of two,000 UK drivers (18+) was carried out by Opinium from 26 – 31 January 2023.